The Bitcoin price is trading at $61,554 on Wednesday, up 0.73% over the last 24 hours. However, the latest drawdown has seen the big crypto lose up to 6% of its value over the last seven days. Profit-taking by traders, the German government’s recent Bitcoin transfers and expected repayments from Mt. Gox have added to the selling pressure on BTC.
The German government moved $24 million more in Bitcoin to centralized exchanges early on Tuesday, following the $65 million sent on June 20 and $130 million on June 19.
These transfers have pushed the Fear and Greed index to 30 (fear), the lowest level in eighteen months. The index is used to ascertain the sentiment among crypto traders.
Bitcoin crypto and fear index. Source: Alternative.me
News of Mt. Gox repayment of lost Bitcoin and Bitcoin Cash to creditors in kind starting in July also elicited a negative reaction among traders. There is a likelihood of higher selling pressure on Bitcoin if Mt.Gox repayment begins next month.
The mounting sell-side pressure has also seen BTC price lose key support levels including all the major moving averages lying between $61,000 and $66,000. As such, the pioneer cryptocurrency sits on relatively support on the downside, compared to the resistance in its recovery path, as shown in the IOMAP chart below.
Bitcoin IOMAP chart. Source: IntoTheBlock
Bitcoin price analysis
At the time of publication, BTC was sitting on immediate support at $60,000, and bulls were required to defend this level to avoid further losses. Note that a daily candlestick close below this level would spell doom for the big crypto, with the next move being a drop toward the local range at $56,500.
Lower than that, the price will drop toward the psychological levels of $55,000 and $50,000, respectively. This will bring the total losses to 18.5%.
BTC/USD daily chart. Source: TradingView
This negative outlook was supported by the downward trajectory of the relative strength index (RSI) and the downward-facing moving averages. The price strength at 33 suggested that the bears were still in control.
On the upside, the RSI paints oversold conditions, meaning that the downtrend may soon come to an end with the bulls buying more on the dips to pull the price higher.
The key levels to watch on the upside are the 200-day EMA at $61,713, the 50-day EMA at $64,904 and the 100-day EMA at $65,792. Higher than that, a rise to $70,000 and later to the stubborn resistance at $72,00 would be the next logical move.
